Massage Envy Franchise Costs $767,000 (2023 Stats)
This article was updated with the 2023 Franchise Disclosure Document
Among all massage therapy chains out there, Massage Envy is one of the leader: it has a large footprint (over 1,100 salons in the US alone).
But how much does it really costs to open a Massage Therapy salon? You would have to invest (only) $767,000 to buy the franchise and set up a new location (as per the latest FDD). What about revenues?
In this article we are looking at Massage Envy to find out how much it really costs, and what’s the average revenue.
Key stats
| Franchise fee | $45,000 |
| Royalty fee | 6.00% |
| Marketing fee | 5.00% |
| Investment (mid-point) | $767,000 |
| Revenue per unit | $1,067,000 |
| Revenue per sq. ft. | [franchise_value_revenue_per_sq_ft] |
| Minimum net worth | $500,000 |
| Minimum liquid capital | $150,000 |
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 | Massage Envy |
| FRANCHISE FEE | $45,000 |
| ROYALTY FEE | 6.00% |
| INITIAL INVESTMENT | $555,000 – $980,000 |
| AVERAGE REVENUE | $1,067,000 |
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About Massage Envy
Massage Envy is a massage and skin care chain headquartered in Scottsdale, Arizona. It is the largest therapeutic massage and skin care provider in the US.
The chain was founded in 2002 by Shawn Haycock and John Leonesio.
It offers therapeutic massages, customized facial and skin care services, hot stone massage therapy and body stretch services in a relaxed, spa-like setting.
Massage Envy began franchising in 2003 and currently has more than 1,100 locations in the US.
Massage Envy franchise pros and cons
The Pros:
- Quality training: The franchisor offers its franchisees extensive online and classroom training to prepare them for the operations of their salons. This includes training in launching their franchises, customer service, human resources and operations best practices.
- Third-party financing: The brand has relationships with third-party lenders to finance its franchisees. Franchisees get funding for startup fees, equipment, inventory and payroll.
- Comprehensive corporate support: Massage Envy and the Roark Capital Group team offer franchisees extensive management support and ongoing coaching to run successful salons.
- Real estate and construction: With a qualified real estate team, the brand helps its franchisees with the construction, design and development of their ideal Massage Envy salons.
- Multiple income streams: Massage Envy has designed various income streams to help franchisees improve sales. It offers franchisees an innovative membership-based approach to creating recurring and sustainable revenue streams.
- Franchise-focused brand: Franchisees become part of and are backed by one the largest franchise-focused group, Roark Capital Group. It is also one of the largest providers of massage, stretch and skincare services hence franchisees can reach a wider audience and scale their businesses.
The cons:
- No exclusive territory protection: The franchisor does not grant its franchisees the right to operate in an exclusive territory area. Franchisees may face competition from channels licensed by the parent company or its affiliates.
- Not a home-based opportunity: The franchise cannot be operated from home or a mobile unit. Franchisees must have an established office space, retail facility or warehouse.
- Not a passive business opportunity: The Massage Envy does not allow for absentee ownership. Franchisees must fully participate in the decision-making and operations of their salons.
- Not a part-time business: The franchise cannot be run part-time or as a side business.
- Strong competition from other massage salon franchises such as Massage Heights or The Now Massage just to name a few
Massage Envy franchise costs
On average, you may need to invest around $767,000 to open a Massage Envy franchise. This amount is on the higher end compared to other salon franchises ($450,000).
The investment amount is an average that depends on factors like the massage salon’s location, size, etc. According to the latest FDD, the investment ranges between $555,000 and $980,000.
Startup costs
The investment covers all the startup costs you may need to start a salon. You must need to pay an initial franchise fee of $45,000 to the franchisor. In addition to this franchise fee, the investment also covers:
- Initial Opening Package: initial supplies of massage lotion, oils, stretching equipment, uniforms, initial inventory of skin and body care products, gift items, furniture, etc.
- Formation Costs: initial training, leasehold improvements, equipment, computer system, security deposit, permits, business licenses, professional fees, etc.
- Initial Marketing: grand opening advertising
- Operating Costs: insurance, 3 month’s rent, and working capital for the first 3 months, etc.
| Type of Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Initial Opening Package | $46,000 | $66,000 |
| Formation Costs | $364,850 | $712,000 |
| Initial Marketing | $15,000 | $15,000 |
| Operating Costs | $84,000 | $142,000 |
| Total | $554,850 | $980,000 |
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| Massage Envy |
| FRANCHISE FEE | $45,000 |
| ROYALTY FEE | 6.00% |
| INITIAL INVESTMENT | $555,000 – $980,000 |
| AVERAGE REVENUE | $1,067,000 |
Massage Envy franchise fees
The initial franchise fee for a Massage Envy franchise is $45,000. In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 6.00% of revenues.
Massage Envy franchise revenue
A Massage Envy franchise generates $1,067,000 in revenue per year on average.
Interestingly, the top 25% of the franchises generate almost 3 times as much revenue compared to the less performing 25%. Here’s a breakdown of revenue per salon by quartile for the 2021 and 2022 fiscal years:
Logically, there is a positive correlation between the age of a franchise and its yearly gross revenue. As you can see, a 10+ years old Massage Envy salon makes 2 times more revenue than a salon that opened less than 5 years ago.
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| Massage Envy |
| FRANCHISE FEE | $45,000 |
| ROYALTY FEE | 6.00% |
| INITIAL INVESTMENT | $555,000 – $980,000 |
| AVERAGE REVENUE | $1,067,000 |
Disclaimer
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